- Gold is supported on the daily 10 EMA.
- The 61.8% Fibo aligns with prior highs of 1,758 that guards 1,739.69.
- US dollar is in focus, bears looking to fade.
Gold was trading in a tight range on Friday and it had travelled between a low of $1,764.31 to a high of $1,773.74 to end flat on the day following a late afternoon recovery.
It is starting out the week in holiday thin markets flat and idles $1,769.
A focus for the week ahead is in the short dollar position which also relatively high, so profit-taking ahead of this week's jobs data on Friday could be the theme.
The DXY rallied some 0.7% on the day from 90.5910 to a high of 91.3229 on Friday to end down 2.1% for the month of April, its largest monthly loss since December.
Meanwhile, a developing trend of firmer-than-expected economic data, higher commodity prices amid supply disruptions as well as huge fiscal and monetary policy support is raising inflation tail risk.
The jobs data will be critical in this respect but so too will be January Consumer Price Index data Wednesday.
Headline inflation is expected to rise a tick to 1.5% YoY, while core is expected to fall a tick to 1.5% YoY.
Also, Fed Chair Powell speaks to the Economic Club of New York Wednesday.
''Looking ahead, no further talk of tapering from the Fed and more talk of big stimulus from Treasury is likely to continue weighing on the dollar and so we can't sound the all-clear just yet. That said, we are becoming increasingly confident that the dollar bottoms in Q1,'' analysts at Brown Brothers Harriman explained.
Gold technical analysis
Chart of the Week: Gold price analysis, a bearish bias persists
The rising 20-day EMA has been important in the case of the bulls which is offering support.
Gold, however, slipped to below prior supporting daily closes and has now formed a new resistance structure. A break of which will likely see a daily extension.
Meanwhile, a failure below the support will open prospects for a deeper retracement of the daily bullish impulse.
The 61.8% Fibo aligns with prior highs of 1,758 that guards 1,739.69.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'